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Locaweb Servicos de InternetBSP:LWSA3 +0.74%82 Return-on-Tangible-Equity is 15.43% as of Mar. 2026, which is 5411% above its 10-year median of 0.28. GuruFocus rates BSP:LWSA3 with a GF Score™ of 82/100 and a GF Value™ of R$5.03 (Modestly Undervalued). The stock has 1 warning sign investors should review. Among 2,476 Software companies, Locaweb Servicos de Internet ranks worse than 85.82% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. Locaweb Servicos de Internet's annualized net income for the quarter that ended in Mar. 2026 was R$86 Mil. Locaweb Servicos de Internet's average shareholder tangible equity for the quarter that ended in Mar. 2026 was R$558 Mil. Therefore, Locaweb Servicos de Internet's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 15.43%.
The historical rank and industry rank for Locaweb Servicos de Internet's Return-on-Tangible-Equity or its related term are showing as below:
BSP:LWSA3'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -42.05 Med: 0.28 Max: 38.67
Current: -41.68
During the past 11 years, Locaweb Servicos de Internet's highest Return-on-Tangible-Equity was 38.67%. The lowest was -42.05%. And the median was 0.28%.
BSP:LWSA3's Return-on-Tangible-Equity is ranked worse than 85.82% of 2476
companies
in the Software industry
Industry Median: 8.825
vs BSP:LWSA3: -41.68
Locaweb Servicos de Internet (BSP:LWSA3) Return-on-Tangible-Equity Explanation
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
Locaweb Servicos de Internet Return-on-Tangible-Equity Related Terms
Locaweb Servicos de Internet Return-on-Tangible-Equity Historical Data
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Locaweb Servicos de Internet Return-on-Tangible-Equity Chart
BSP:LWSA3 vs MSFT, ORCL, PLTR: Return-on-Tangible-Equity Comparison
For the Software - Infrastructure subindustry, Locaweb Servicos de Internet's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Locaweb Servicos de Internet Return-on-Tangible-Equity vs Software Industry
For the Software industry and Technology sector, Locaweb Servicos de Internet's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Locaweb Servicos de Internet's Return-on-Tangible-Equity falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Mar. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 15.43% mean?
Locaweb Servicos de Internet (BSP:LWSA3) has a Return-on-Tangible-Equity of 15.43% as of Mar. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Locaweb Servicos de Internet and its competitors. This is 5411% above median its historical median of 0.28. According to the industry distribution chart, Locaweb Servicos de Internet ranks #2125 out of 2476 companies in the Software industry, placing it in the top 85.8%.
Is Locaweb Servicos de Internet's Return-on-Tangible-Equity too high?
Locaweb Servicos de Internet's current Return-on-Tangible-Equity of 15.43% is 5411% above median its 10-year median of 0.28. The Software industry median Return-on-Tangible-Equity is 8.83. Locaweb Servicos de Internet's value of 15.43% is 74.8% above this industry median. Based on the distribution chart, Locaweb Servicos de Internet ranks #2125 out of 2476 companies in the Software industry, which is in the bottom quartile relative to peers. Overall, Locaweb Servicos de Internet has a GF Score™ of 82/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Locaweb Servicos de Internet's Return-on-Tangible-Equity compare to MSFT and ORCL?
According to the Software industry distribution chart, Locaweb Servicos de Internet ranks #2125 out of 2476 companies for Return-on-Tangible-Equity. This places Locaweb Servicos de Internet in the lower half of its industry. The industry median Return-on-Tangible-Equity is 8.83. Locaweb Servicos de Internet's value of 15.43% is 74.8% above this benchmark. While the company's 10-year median is 0.28 vs. the industry median of 8.83, Locaweb Servicos de Internet has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Return-on-Tangible-Equity for a Software company?
The median Return-on-Tangible-Equity among Software companies is 8.83, based on 2,476 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Locaweb Servicos de Internet's current Return-on-Tangible-Equity of 15.43% is 74.8% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Locaweb Servicos de Internet and its competitors. For the Software industry, the median Return-on-Tangible-Equity is 8.83 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Locaweb Servicos de Internet's current Return-on-Tangible-Equity is 15.43%, which is 5411% above median its own 10-year median of 0.28. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Locaweb Servicos de Internet stock overvalued right now?
Based on GuruFocus' analysis, Locaweb Servicos de Internet (BSP:LWSA3) is currently considered Modestly Undervalued. The stock's GF Value™ is R$5.03, compared to a current price of R$4.07 — trading 19.1% below its estimated fair value. The current Return-on-Tangible-Equity is 15.43%, which is 5411% above median its 10-year median of 0.28 and 74.8% above the Software industry median of 8.83. Locaweb Servicos de Internet's overall GF Score™ is 82/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For Locaweb Servicos de Internet (BSP:LWSA3), the current Return-on-Tangible-Equity is 15.43% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Locaweb Servicos de Internet (BSP:LWSA3) Overvalued in 2026?
Based on GuruFocus' analysis, Locaweb Servicos de Internet stock appears to be undervalued.
The current stock price of R$4.07 is trading 19.1% below its estimated GF Value™ of R$5.03.
GuruFocus considers Locaweb Servicos de Internet to be Modestly Undervalued.
Key valuation signals for BSP:LWSA3:
Return-on-Tangible-Equity: 15.43% (5411% above median its 10-year median of 0.28)
GF Value™: R$5.03 vs. price of R$4.07 (19.1% below fair value)
Industry Position: 74.8% above the Software median (#2125 of 2476)
No single metric tells the full story. See the BSP:LWSA3 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Locaweb Servicos de Internet SA is a Brazil-based software company. It offers digital marketing, cloud, and accommodation services such as website hosting, WordPress hosting, domain registration, and email services. The operations of the Company and its subsidiaries are divided into two operating segments: Be Online and SaaS, and Commerce. The Be Online and SaaS segment includes hosting and cloud services, as well as those called SaaS (email, marketing intelligence software, and site builder). The Commerce segment includes e-commerce solutions, platforms, marketplace integration, and sub-acquiring business services. It generates the majority of its revenue from the Commerce segment.
82GF Score
Get the complete analysis for BSP:LWSA3
Return-on-Tangible-Equity is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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